One of the great mysteries in Singapore’s private property market is developer pricing for new launches. We’ve encountered few events that are more laden with myth, rumours, and outright falsehoods. In most cases, the only part that most people get right is “buy earlier = cheaper” (and even that isn’t always true).
To give you a better sense of how developer pricing works, you should know these six general approaches to new launch pricing. If nothing else, it’s more useful than looking at the “$1,5XX psf” signs plastered all over the showflat:
Note: These developer pricing tactics are not exclusive, and can be combined
For example, a condo can be launched in phases, have a VVIP launch, and also change pricing based on floor. Developers may use a combination of the following in setting the price.
Tactic #1: Soft Launch / VVIP launch
This is the best known, and almost universal tactic among developers.